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SWOT Analysis for Uber

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by

Sue Chan

on 10 August 2015

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Transcript of SWOT Analysis for Uber

Action Plan
Weaknesses
Costs of operating vehicles are very high. But, the drivers do not earn so much.
UBER
Competitor
High vehicles operating cost
Competitive business model
Business model is simple
Hard to build customer loyalty
Privacy concerns
Strengths
Opportunities
Threats
First in market
Branding image
Positioning
Hard for late comers to steal market
Every drivers = Uber drivers
Register through the web
Wait for approval
Theoretically unlimited service
Capacity problem
Technology Investment
Best route
Pricing calculation
Full time driver
Drive anytime!
Accept requests they want
Actively search for customers
Ignore requests they do not want
No HK
Island!
Protect passengers
Price control
Hike
Vehicle tracking
Set pickup location, destination
In-process waiting
Get current location, ETA of driver
Known, finite waiting
Credit card payment
EEMT5520 Project Presentation
Service Industry Analysis on Single Trip Car Sharing
Group 4
Uber driver burden
Spend a lot on car
Maintenance
Fuel
Insurance
For the majority, independent driving is not the $90,000 per year job. (Uber's example from earlier this year)
Only 2% earned more than $75,000 in 2014.
Drivers income is low
Uber stores the location data where customer gets on and off the taxi
Users are interacting with drivers instead of Uber employee.
Building loyalty depends on quality of drivers' services
Poor Taxi-riding Experience
Expectation ≠ Perception
Uncertain, long waiting time
No centralized information
Location
ETA
Impoliteness
Exposure and Popularity
Drivers
Passengers - luxurious ride experience
ETA
Convenience
Popularity
Profit!
Drivers - electric cars
Reduce cost
Increase profit margin
Matching both parties' interests
New service other than car sharing?
Attract
Investor!
Delivery
Always N/A in suburban areas
Refuse to cross harbour
Illegal Taxicab Operation
Uber's vehicles - not duly licensed
Risky Business
Emerging Competition
Low barriers of entry
Uncertainty of Profit Margin
If Uber get sued successfully...
Charges less than traditional taxi
Personal vehicles offer unauthorized taxi-like services
Illegal
Insurance covered
Entire business model destroyed
Liability costs
Reputation lost
Limit business growth
Copycats
Kuaidi
Fly Taxi
Fast Taxi
Lower profit margin to drivers
Loss customers to other competitors
Dilute Uber's revenue
High tech startup found in 2009
Connect transportation industry by mobile app
Collaborative
Consumption
300 cities in
58 countries
Convenient
Easy
Less expensive
Traditional
taxi driver
HK Gov't
Ban Uber!
Ruins Taxi
business!
Contrasting
Emotion
Rule
transportation world?
High expansion rate
Future looks bright
Not easy to get over goal line
Pay for service?
Just being picked?
Offensive
Defensive
Uber x Nature
Steal unwanted market
Satisfy needs of both
drivers and passengers
Extended Uber
Reservation
Provide loyalty program for users
Users take a several amount of rides
Able to join the program
Incentive for good drivers
Drivers have good reviews?
Higher commission
Maintain Stable amount of Uber drivers
Uber LCL (Less Cabin Load)
Uber Courier/ Delivery
Drivers joining Uber are required to accept a certain percentage of rides
Current Situation
Don’t let potential risks stop a good idea from starting
Establish brand recognition and trust & Build loyal customer support
Full transcript